There are many problems with current methods of providing insurance. Insurance coverage may be discontinuous based on factors that may or may not be in the control of the policy holder. For example, a life insurance policy may provide protection in the case where the person insured dies. However, the life insurance policy may have exclusions that work to defeat the coverage, even though the person insured may want the coverage to continue. For example, a life insurance policy may exclude coverage of an insured person when the insured person enters a combat zone. Coverage is excluded because the additional risk of entering a war zone is not the risk that the insurance company agreed to provide. Thus, coverage discontinues when the insured enters the combat zone even though the person insured may want coverage to continue and may be willing to pay an additional premium for the coverage to continue. It may be possible for a person to take separate measures to continue coverage, such as contacting the insurance company, getting a quote for a rider, accepting the terms of the rider and paying for the rider. However, such actions may be inconvenient, impracticable or impossible based on the circumstances and frequency of travel. Additional complications may arise when travel takes an insured to multiple locations that are excluded, especially when the insured may not know where his travels may take him.
In another example, automobile coverage may exclude coverage when an automobile that is registered in the United States enters another country, such as Mexico. As before, coverage is excluded because the additional risk of entering Mexico is not the risk that the insurance company agreed to provide. However, if one travels to Mexico seldom or often, the person may want automobile coverage to continue. It may be inconvenient, impracticable or impossible to make arrangements for coverage. Additional complications may arise when the travel is frequent or takes place outside of hours when insurance company personnel are available to make arrangements for additional coverage.
Another example is when events cause a discontinuation in an insurance policy. For example, some insurance policies may exclude coverage based on travel to a state designated by the State Department of the United States with a travel warning. Issuance of such a travel warning may instantaneously discontinue coverage where coverage existed the moment before. This may be especially distressing to people who frequently travel to foreign countries, such as businessmen, diplomats or members of the United States armed services. Although such acts may cause a discontinuance in insurance coverage, the insured may want the coverage to automatically continue and may be willing to pay the increased premium for coverage.